Aggregates & Stone Trade Finance

TFG Aggregates and Stone Financing Guide

Trade Finance Global / Finance Products / Aggregates & Stone Trade Finance

Aggregates & Stone Trade Finance

The global construction market is set to grow by $8 trillion by 2030, which much of this growth driven by China, US and India. This growth will require the production and financing of construction products – aggregates form a large part of this.

What is Stone and Aggregate Trade Finance

Aggregate is a term that includes any particulate material. The Monthly Statistics of Building Materials and Components release by the Department for Business, Energy & Industrial Strategy illustrates the increase in the price for construction materials, in which we see an approximate 84% increase in the index price from roughly 66-122, between 2002 and 2019.

The DBEIS includes another illustration in the release of the Imports and Exports of construction materials between 1984 and 2019. They depict a quarterly average increase of 4% in the value of construction material imports, whilst the value of exports experienced an average of 2.1% per quarter

Products Financed & Finance Requirements

Products Financed:

  • Gravel
  • Crushed stone
  • Sand
  • Slag
  • Recycled concrete
  • Geosynthetic aggregates.

Finance Requirements:

  • You can demonstrate a history of profitable trading
  •  Your business is creditworthy
  •  You have a well-researched business plan in support of your proposed venture
How the transaction works

Unlike conventional finance, trade finance products require limited capital guarantees up front from the firms involved. Instead, Trade Finance Global will work with you to assess your business and your proposed venture and recommend an appropriate trade finance product for you. They will then identify sources of private finance and construct a product for you with bespoke lending terms and some form of guarantee for the lender – usually, this will take the form of an unpaid invoice, cash due in accounts receivable, or even the fertilizer goods involved in the transaction. Once agreed, TFG can extend finance to the buyer in the transaction to pay the seller in full upon dispatch of the goods, cash flow the buyer can enjoy lengthy repayment terms to ensure they can transport, receive and sell the goods involved in their venture, before repaying the finance from the profits.

What is the SIC code for aggregates?

As the term aggregate can cover myriad of different products and trades, there are multiple SIC codes applicable:

  • 23610 – Manufacture of concrete products for construction purposes
  • 23630 – Manufacture of ready-mixed concrete
  • 23690 – Manufacture of other articles of concrete, plaster and cement
  • 28923 – Manufacture of equipment for concrete crushing and screening and roadworks.
  • 08110 – Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate.
  • 23700 – Cutting, shaping and finishing of stone



Speak to our trade finance team

About the Author

Mark heads up the trade finance offering at TFG where his team focuses on bringing in alternative structured finance to international trading companies. Prior to joining TFG (, Mark qualified as a lawyer with a top ranked global trade and structured commodity finance team.

Mark has previously advised commodity trading firms, banks and alternative capital providers on international structured trade financings, pre-export, prepayment and limited recourse structures – notably in the oil, soft commodities and metals sectors. This has included mining finance projects, structured letter of credit facilities, receivables discounting and forfaiting agreements.

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